Sterling Tools Intrinsic Value

STERTOOLSAuto componentsSmall CapNSE

Market cap ₹811 CrEPS ₹12.52

Current market price

₹225.24

-₹6.45 (-2.78%)

NSE · 9 Oct 2026

Closing price

Intrinsic Value Estimate

Based on DCF and peer comparison with Bear / Base / Bull scenarios.

Final Intrinsic Value

₹420.19

+86.55% vs market

Undervalued

vs Market Price

+86.55%

Undervalued

Valuation range₹344.97 – ₹473.49

Bear
₹344.97Base
₹420.19central estimateBull
₹473.49

Scenario range reflects DCF assumptions and peer-multiple distribution.

Sterling Tools Intrinsic Value Analysis

The latest available EOD closing price for Sterling Tools (STERTOOLS) is ₹225 per share. Understock's estimated intrinsic value is ₹420 per share. This estimate is 86.6% above that price; the page's comparison band labels the shares undervalued.

The stored DCF estimate is ₹449, and the peer-based estimate is ₹405. The displayed value combines them using the stored DCF weight of 35% and peer weight of 65%. Peer comparison uses 8 matched industry companies and contributing P/E, P/B multiples.

For context, available company data reports ROCE of 8.2% and P/E of 27.7×. These metrics describe the business and are not separate intrinsic-value estimates.

How Understock Calculates Intrinsic Value

Understock follows the company's stored valuation classification. Where DCF applies, the model discounts projected or normalized cash flows and terminal value using stored assumptions. Peer valuation compares available company multiples with medians from matched industry or sector companies, with a curated peer-group fallback where database matches are unavailable; the contributing multiples and their weights depend on sector rules and available data. For Sterling Tools, the displayed estimate uses both stored values and their respective weights. DCF and peer estimates can differ because they use different assumptions, financial metrics, and market reference points.

Review this company's DCF valuation · Learn how DCF works · Use the DCF calculator · See Sterling Tools peer valuation · What intrinsic value means

Company in heavy investment phase. DCF based on operating cash flow. Peer comparison weighted more heavily.

The intrinsic value shown is an algorithmic estimate based on publicly available financial data — including DCF analysis, peer comparison, and historical financials. It is not a research report, investment advice, or a recommendation to buy, sell, or hold any security. Stock valuations involve uncertainty and may differ significantly from market prices. Please consult a SEBI-registered investment adviser before making any investment decision.

Sterling Tools Peer Comparison

How this company stacks up against sector peers on valuation and quality metrics.

Auto components · 8 peers · sector medians shown

Better than medianWorse than median

Company	Mkt Cap	P/E	P/B	EV/EBITDA	ROE	Net Margin	Rev CAGR 3y
Sterling Tools STERTOOLS · you	₹811 Cr	27.7×	1.5×	—	5.6%	3.5%	2.4%
Sector median	—	22.6×	4.8×	13.2×	16.4%	0.2%	11.8%
Fiem Industries Limited FIEMIND	₹5,491 Cr	24.8×	5.2×	13.2×	21.0%	9.1%	15.1%
LG Balakrishnan & Bros Limited LGBBROSLTD	₹5,394 Cr	15.9×	2.4×	10.9×	14.8%	10.4%	11.8%
Sharda Motor Industries Limited SHARDAMOTR	₹5,156 Cr	15.7×	5.6×	—	35.6%	0.1%	—
Steel Strips Wheels Limited SSWL	₹4,916 Cr	22.0×	3.4×	—	15.5%	0.0%	—
Rolex Rings Limited ROLEXRINGS	₹4,800 Cr	31.6×	4.8×	—	15.3%	0.2%	—
NRB Bearing Limited NRBBEARING	₹4,551 Cr	31.7×	4.7×	20.2×	14.8%	10.7%	8.1%
Sandhar Technologies Limited SANDHAR	₹3,856 Cr	20.9×	3.6×	—	17.3%	0.0%	—
Uniparts India Limited UNIPARTS	₹3,683 Cr	23.2×	6.4×	—	27.5%	0.1%	—

Peer comparison verdict

Sterling trades at a premium to sector peers on P/E (27.7× vs median 22.6×). The market is pricing in higher growth — worth verifying whether recent revenue trends support that expectation.

Business quality

Valuation

P/E ratio

27.7×

P/B ratio

—

EV/EBITDA

—

Price/Sales

—

Returns

ROE

5.6%

ROCE

8.2%

ROA

—

Growth

Revenue CAGR (3yr)

2.4%

EPS CAGR (3yr)

-15.1%

Efficiency

Asset turnover

—

FCF yield

0.2%

Dividend yield

1.2%

Liquidity & Solvency

Debt / Equity

0.22×

Debt / EBITDA

—

Interest coverage

43.7×

Current ratio

1.97×

Quick ratio

—

Financial health

Piotroski F-Score, Altman Z-Score, and key solvency ratios.

Financial health data is not yet available for this company.

Full financial data

Charts and annual statements for income, balance sheet and cash flow.

Income trend

Revenue, profit and margin trends over time.

Revenue

Net profit

Operating margin

Net margin

Revenue

₹828 Cr

Net profit

₹29 Cr

Operating margin

—

Net margin

3.5%

Revenue and net profit in ₹ Crores (left axis). Margins % on right axis.

Cash flow

Where cash comes from and where it goes.

Operating CFInvesting CFFinancing CFFree cash flow

Operating CF — Cash earned from running the business. The core engine of financial health.

Investing CF — Cash spent on assets and equipment. Negative is normal — it means the company is investing in growth.

Financing CF — Cash from borrowing or repaying loans and dividends. Negative means debt is being repaid.

Free cash flow — Operating CF minus capex. Cash left after keeping the business running. Positive and growing is ideal.

Operating CF

₹55.95 Cr

Investing CF

₹0 Cr

Financing CF

₹0 Cr

Free cash flow

₹1.32 Cr

Balance sheet

Assets show what the company owns. Liabilities show what it owes. Equity is what's left for shareholders.

How the company is funded — equity is owners' money, debt is long-term borrowing, current liabilities are short-term obligations.

Equity

Debt

Current liabilities

Total assets

—

Total debt

₹116 Cr

Equity

₹526 Cr

Debt / Equity

0.22×

Numbers are illustrative — order-of-magnitude correct. For precise figures, refer to the company's annual report on BSE/NSE.

Shareholding pattern

Who owns this company and how that has changed.

What shareholding tells you: When promoters (founders/controlling shareholders) increase their stake, it usually signals confidence in the business. Rising FII (foreign funds) interest means international money is moving in. High promoter pledge is a risk — pledged shares can be force-sold if the stock price falls sharply.

Latest quarter

Promoter

64.9%

FII

0.1%

-0.1 pp QoQ

DII

0.1%

-0.3 pp QoQ

Retail

35.0%

Trend over time (%)

Quarterly data

Category	Sep 2023	Dec 2023	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026	Change (YoY)
Promoter	65.8%	65.8%	65.8%	65.8%	65.8%	65.3%	65.0%	65.0%	65.0%	65.2%	64.9%	64.9%	-0.2 ppYoY
FII (Foreign)	0.0%	0.0%	0.0%	0.1%	0.1%	0.2%	0.5%	0.1%	0.2%	0.1%	0.2%	0.1%	0.0 ppYoY
DII (Domestic)	5.7%	5.7%	5.5%	5.5%	4.7%	4.2%	2.9%	0.7%	0.0%	0.1%	0.3%	0.1%	-0.6 ppYoY
Retail	28.5%	28.6%	28.7%	28.7%	29.4%	30.2%	31.6%	34.2%	34.8%	34.6%	34.6%	35.0%	+0.8 ppYoY

Signals from the trend

📉

PromoterDown 0.9pp — worth monitoring for further declines

➡️

FIIStable

📉

DIINet sellers (5.6pp) — domestic funds are reducing

Overall cautious — promoter selling warrant monitoring.

pp = percentage points. FII = Foreign Institutional Investors. DII = Domestic Institutional Investors (MFs, insurance). Data sourced from NSE/BSE filings. Verify on BSE/NSE before any investment decision.